I have a question. -Mm-hmm. -How does ecommerce work? -S,o you're thinking about
launching a website or wanting to make money on the internet? Well, you want to
know these 6B steps to e-commerce so they understand that with... -I have a
question. -Yes. -How does ecommerce work? -We're going to answer that. How does the
e-commerce work? Alright. Let's start with the basics. If you want to make a
sell online, let's just start with the website. -Alright. But even more basic
than that. Ecommerce is what you just said, making a sale online. -Yeah. -From your
own domain whatever that is, right? Okay. -Yeah. So, we're just talking about like
Commerce has trade and exchange money on the Internet. So, how does it all work? How
can you make a sell or get paid money? -Okay. -Through a website through the
internet. -Love it. So, you have a website but your website
needs to have that purchase capability. We call that a shopping cart. -Oh, yes.
-Pretty good name? -Yeah. -So, you can get a software or a tool... -Is that a plug-in? Is
that what that is? -Yeah, typically a plug-in but it's... You
can do it a few ways. -Okay. -If yeah... A lot of a lot of people want to have a custom
one and it's like all these complicated steps. I'm going to tell you a simple
hack. A simple solution after I tell you what these steps are. -Okay. -So, once you
have a shopping cart on your website, which can be a plug-in, you need an SSL
certificate. And does it have to be the actual little shopping cart icon like
Amazon uses? It just has to be something where you're going to add this product
or service to your... -Of course. Okay, I mean, you know, it seems like it's always an
actual cart. You know? -They make sense. -And by the way, I love the way we treat
shopping carts. It's just funny like they're absolutely indestructible. No one
respects shopping carts. Have you ever seen anyone actually put a shopping cart back
like gently? It's always just, "Get away from me! Get in there!" Or if there isn't a
thing slamming into the curb, what do we care?
-So, that's an analogy for how people are going to treat our online shopping carts? -No
it was just a deviation from what its going to be sure to be really exciting
stuff. Alright. So shopping cart.
-Kind of exciting but important. -Okay. -Somewhat boring but important. SSL certificate,
have you heard of that? -Sizzle? Secure Socket Layer? -I was going to say I don't
even know what that means. But that's right. -Yeah, okay. -What does that even
mean? Yeah. It's... You have to have financial
data encrypted. People are going to be entering in their credit card info, their
confidential information. -Okay. -So, you have to have this SSL certificate there.
Kind of complicated to set up and it is a bit of a pain even from a guy that
used to own a web design company. It was a pain. And so, I'll tell you a shortcut
or a hack you can avoid the pain of that. But... So, you have a shopping cart, you have
an SSL certificate that will encrypt it. Keep things safe and secure and then it
needs to go through a payment gateway. There's actual services out there that
have the authority to pull funds from a credit card. -Like PayPal or something, right?
-We'll get to that. PayPal is more than just a payment gateway. You could
like... There's different companies like First Data. There's... -I've heard of that
one. -I can't think... But either merchant service providers, right? That give you, that allow you to
have the payment? Gateway. -Yeah. -Yeah. -So, that the payment gateway is what...-Fiserv?
-Uh-huh. They're the ones that are authorized to grab funds from a credit
or debit card and give it to you. -Okay. -But before it goes to you, it has to go
into a merchant account. So, when you talked about merchant services, typically,
those two things come together. They provide that payment gateway and they
provide you a merchant account. So, if a customer makes a purchase, let's say
they're paying you $100. The payment gateway will grab that $100
and put it in your merchant account. -Okay. -But then one more step after that, you've
got to have a business bank account. So you go to your bank and you say, "Hey, I
need a business bank account." They'll check that you've got a business set up.
And then you link your business bank account to your merchant account and
funds will typically, they'll like... It'll automatically deposit into your bank
account a couple days later. -Nice, okay. So, that's what you got to have. Those are the
things you have to have? -I just made sure. I said 6. I wanted to make sure
that those are 6 things. So, you start with your website. Shopping cart, SSL
certificate, payment gateway, merchant account and then
to your business bank account. That's really the 6 steps of e-commerce. Now,
you mentioned PayPal. PayPal covers the shopping cart if they take care of the
SSL certificate for you. They take care of the payment gateway and the merchant
account. So, all you need is a website. -All you need is a website and a bank account. Right. -And
and they'll take care of the other 4. And it's free. It's free. -I mean, I know
that I've used PayPal in the sense of, "Hey, send us to me via PayPal or I can
take PayPal off my phone or register or square." Or one of those things. But
I've never been able or I don't know how to like add that, put it on a website so
that I can do the Commerce from the website. -It's actually pretty
straightforward. You'll log into your account and you can add a product, you
can create a button. And it will give you the code that you can just paste on your
website. -Oh, so it's that simple. -Another... Here's even simpler. In your website, you
can add a PayPal purchase plug-in and then it will just say what's your PayPal
ID or your PayPal email address and it will just automatically link it to your... -Plug-in.
I'm not smart but I know I've heard that term plug-in before. I used it earlier
and there's an actual that... He stole that from me. -I did. -Love that. -So, hopefully
that's helpful and understanding how Ecommerce works. -But you said you were
going to give us some hacks like a shortcut? -PayPal. -That's the hack.
Oh, I ruined the whole thing when I said PayPal early. -No, you're good. So, I threw
the whole surprise off. -There's one limitation to PayPal. The limitation
is you don't actually get the billing information from your client. It's
kept confidential. The client sends money to PayPal. PayPal puts money in your
PayPal account. So, if you're going to have recurring billing or you want to
manually be able to build them like they authorize it and then you just charge it,
you can't do that with PayPal. So, there are other shopping carts that you know,
that I've actually talked about at that in other episodes. But PayPal is a great...
You know, I'll tell you about one other options. I love actually using QuickBooks
Online. They have a service that's $10 a month. You can send them an
invoice and then they'll just pay it and send it back and then they'll
deposit it into your your business bank account. Now, the great advantage
to that is, I can turn off the credit card option. And only accept bank transfers.
And I do this for large dollar amounts. When somebody's going to pay me $3,000 or
$6,000. Or something though. I'll send them the invoice that allows bank
transfer option only. I don't select the box for credit cards. And what it does is
it eliminates all merchant fees except for $0.50. -Okay. -So, on $6,000
payment, if they were paying me through a credit card, typically that's
$210 that I would pay in merchant fees. And by using
QuickBooks Online invoice, I only pay $0.50. -But you're paying 10 bucks
a month. But if you have enough of those, -Oh yeah. -Obviously, it's not going to be a
hundred, 200, 300 dollar. -So, through PayPal,
I said PayPal was free. -Yeah, I was going to say. -But you pay $0.30
plus like three and a half worth or is a three percent something. You pay
a few percent of the purchase price. -Right. Yeah, to get a payout, is you're
going to... You pay a small percentage. Yeah, yeah. -Okay, yeah. So, basically what
you're saying is, this entire video, you could have just turned on the camera and
said if you need ecommerce go to PayPal?
-Okay. We'll see you tomorrow. Subscribe. We'll have awesome content.